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In a shared hosting plan, hundreds of websites lie on a single physical server. All these sites share a common server resource and thus has a lot of interdependencies. Whereas, a VPS hosting works on the lines of virtualization where each website lies on a separate virtual machine (VM)
Shared hosting utilizes a single physical server to host hundreds of websites. But cloud hosting uses the concept of virtualization where each virtual machine hosts a single webpage. Shared is the cheapest available plan, whereas cloud hosting is a bit pricey.
Superficially, the noticeable difference between shared and dedicated server is the cost. But there are underlying major differentiating factors such as performance, disk space, bandwidth, security, uptime, etc. Dedicated server hosting is suitable for large businesses
Shared hosting allows several websites to reside and utilize single web server. Each website will have its limited resource, and overall the web server resource will be divided among all these sites. This plan may go well with small websites with less traffic.